Clean Harbors Reports Fourth-Quarter and Year-End 2010 Financial Results07:30 EST Wednesday, February 23, 2011
NORWELL, Mass. (Business Wire) -- Clean
Harbors, Inc. (“Clean Harbors”) (NYSE: CLH), the leading
provider of environmental and energy and industrial services throughout
North America,today announced financial results for the fourth
quarter and year ended December 31, 2010.
Revenues increased 20% to $417.1 million from $347.0 million in the
fourth quarter of 2009, reflecting a strong contribution from both its
environmental and energy and industrial businesses. Income from
operations increased 54% to $43.0 million from $27.9 million in the
fourth quarter of 2009.
Fourth quarter 2010 net income grew to $23.3 million, or $0.88 per
diluted share, from $13.9 million, or $0.53 per diluted share, in the
fourth quarter of 2009. EBITDA (see description below) increased to
$70.3 million from $52.6 million in the fourth quarter of 2009.
Comments on the Fourth Quarter
“Clean Harbors concluded a successful 2010 with a strong fourth-quarter
performance, as we delivered 34 percent growth in EBITDA on a 20 percent
increase in revenue,” said Alan S. McKim, Chairman and Chief Executive
Officer. “We experienced a continuation of the favorable industry trends
we saw in the third quarter, achieving double-digit growth across a
number of key markets including Chemicals, Manufacturing, Oil & Gas,
Refineries and Utilities.”
“Both our Environmental business and our Energy and Industrial business
generated momentum during the quarter,” McKim said. “Within
Environmental, utilization at our incinerators exceeded 93% for the
quarter – our highest level of 2010. In addition, a sharp uptick in
projects drove total landfill volumes up by more than 60 percent from
the same period of 2009. Within our Energy and Industrial business,
increased investments in Western Canada by major energy companies
continued to spark production activity, creating new opportunities for
us throughout the region and generating another excellent quarter for
our lodging business.”
Full-Year 2010 Results
Revenues for 2010 increased 61% to $1.73 billion from $1.07 billion in
2009. The Company's participation in the oil spill response efforts in
the Gulf of Mexico and Michigan generated revenues of approximately $253
million in 2010. Income from operations more than doubled to $211.9
million from $82.1 million in 2009. 2010 net income grew to $130.5
million, or $4.93 per diluted share, from $36.7 million, or $1.47 per
diluted share, in 2009. EBITDA (see description below) doubled to $314.7
million from $157.6 million for 2009.
The Company concluded 2010 with cash and marketable securities of $305.4
million, compared with $235.6 million at December 31, 2009.
Non-GAAP Results
Clean Harbors reports EBITDA results, which are non-GAAP financial
measures, as a complement to results provided in accordance with
accounting principles generally accepted in the United States (GAAP) and
believes that such information provides additional useful information to
investors since the Company's loan covenants are based upon levels of
EBITDA achieved. The Company defines EBITDA in accordance with its
existing credit agreement, as described in the following reconciliation
showing the differences between reported net income and EBITDA for the
fourth quarter and full year of 2010 and 2009 (in thousands):
For the three months ended:
For the year ended:
December 31,2010
December 31,2009
December 31,2010
December 31,2009
Net income
$
23,329
$
13,922
$
130,515
$
36,686
Accretion of environmental liabilities
2,508
2,689
10,307
10,617
Depreciation and amortization
24,802
21,947
92,473
64,898
Other income
(310)
(104)
(2,795)
(259)
Loss on early extinguishment of debt
—
—
2,294
4,853
Interest expense, net
6,164
6,454
27,936
15,999
Provision for income taxes
13,815
8,678
56,756
26,225
Income from discontinued operations, net of tax
—
(1,027)
(2,794)
(1,439)
EBITDA
$
70,308
$
52,559
$
314,692
$
157,580
Business Outlook and Financial Guidance
“Our outlook remains decidedly positive as we head into 2011. We are
continuing to see indications of the general economic recovery as we
maintain an active pipeline of potential new projects within both our
Environmental and Energy and Industrial businesses. We are excited about
the prospects for our pending acquisition of Badger Daylighting, and are
continuing to evaluate additional strategic acquisition opportunities,”
McKim concluded.
Based on fourth-quarter performance, and current market conditions,
Clean Harbors is increasing its 2011 annual revenue and EBITDA guidance.
The Company currently expects 2011 revenues in the range of $1.54
billion to $1.59 billion, up from its previous revenue guidance of $1.52
billion to $1.57 billion. For 2011, the Company expects EBITDA in the
range of $262 million to $270 million, an increase from its previous
guidance of $258 million to $267 million. This guidance is exclusive of
any potential future acquisitions, including the Company's planned
purchase of Badger Daylighting.
Conference Call Information
Clean Harbors will conduct a conference call for investors today at 9:00
a.m. (ET) to discuss the information contained in this press release. On
the call, Chairman, President and Chief Executive Officer Alan S. McKim
and Executive Vice President and Chief Financial Officer James M.
Rutledge will discuss Clean Harbors' financial results, business outlook
and growth strategy.
Investors who wish to listen to the webcast should log onto www.cleanharbors.com/investor_relations.
The live call also can be accessed by dialing 877.709.8155 or
201.689.8881 prior to the start of the call. If you are unable to listen
to the live call, the webcast will be archived on the Company's website.
About Clean HarborsClean
Harbors is the leading provider of environmental and energy
and industrial services throughout North America. The Company serves
more than 50,000 customers, including a majority of the Fortune 500
companies, thousands of smaller private entities and numerous federal,
state, provincial and local governmental agencies.
Headquartered in Norwell, Massachusetts, Clean Harbors has more than 175
locations, including over 50 waste management facilities, throughout
North America in 36 U.S. states, seven Canadian provinces, Mexico and
Puerto Rico. The Company also operates international locations in
Bulgaria, China, Singapore, Sweden, Thailand and the United Kingdom. For
more information, visit www.cleanharbors.com.
Safe Harbor Statement
Any statements contained herein that are not historical facts are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
generally identifiable by use of the words “believes,” “expects,”
“intends,” “anticipates,” “plans to,” “estimates,” “projects,” or
similar expressions. Such statements may include, but are not limited
to, statements about the Company's business outlook and financial
guidance and other statements that are not historical facts. Such
statements are based upon the beliefs and expectations of Clean Harbors'
management as of this date only and are subject to certain risks and
uncertainties that could cause actual results to differ materially,
including, without limitation, those items identified as “risk factors”
in the Company's most recently filed Form 10-K and Form 10-Q. Therefore,
readers are cautioned not to place undue reliance on these
forward-looking statements. The Company undertakes no obligation to
revise or publicly release the results of any revision to these
forward-looking statements other than through its various filings with
the Securities and Exchange Commission, which may be viewed at www.cleanharbors.com/investor_relations.
CLEAN HARBORS, INC. AND SUBSIDIARIESUNAUDITED CONSOLIDATED STATEMENTS OF INCOME(in thousands except per share amounts)
For the three months ended:For the year ended:December 31,
December 31,December 31,
December 31,2010200920102009
Revenues
$
417,058
$
346,969
$
1,731,244
$
1,074,220
Cost of revenues (exclusive of items shown separately below)
290,770
252,816
1,210,740
753,483
Selling, general and administrative expenses
55,980
41,594
205,812
163,157
Accretion of environmental liabilities
2,508
2,689
10,307
10,617
Depreciation and amortization
24,802
21,947
92,473
64,898
Income from operations
42,998
27,923
211,912
82,065
Other income
310
104
2,795
259
Loss on early extinguishment of debt
—
—
(2,294)
(4,853)
Interest (expense), net
(6,164)
(6,454)
(27,936)
(15,999)
Income from continuing operations before provision for incometaxes
37,144
21,573
184,477
61,472
Provision for income taxes
13,815
8,678
56,756
26,225
Income from continuing operations
23,329
12,895
127,721
35,247
Income from discontinued operations, net of tax
—
1,027
2,794
1,439
Net income
$
23,329
$
13,922
$
130,515
$
36,686
Earnings per share:
Basic
$
0.88
$
0.53
$
4.96
$
1.48
Diluted
$
0.88
$
0.53
$
4.93
$
1.47
Weighted average common shares outstanding
26,371
26,244
26,311
24,817
Weighted average common shares outstanding plus potentially
dilutive common shares
26,585
26,363
26,467
24,933
CLEAN HARBORS, INC. AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETSASSETS(in thousands)
December 31,December 31,20102009
Current assets:
Cash and cash equivalents
$
302,210
$
233,546
Marketable securities
3,174
2,072
Accounts receivable, net
332,678
274,918
Unbilled accounts receivable
19,117
12,331
Deferred costs
6,891
5,192
Prepaid expenses and other current assets
28,939
18,348
Supplies inventories
44,546
41,417
Deferred tax assets
14,982
18,865
Assets held for sale
—
13,561
Total current assets
752,537
620,250
Property, plant and equipment, net
655,394
589,944
Other assets:
Long-term investments
5,437
6,503
Deferred financing costs
7,768
10,156
Goodwill
60,252
56,085
Permits and other intangibles, net
114,400
114,188
Other
6,687
3,942
Total other assets
194,544
190,874
Total assets
$
1,602,475
$
1,401,068
CLEAN HARBORS, INC. AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETSLIABILITIES AND STOCKHOLDERS' EQUITY (in thousands)
December 31,December 31,20102009
Current liabilities:
Current portion of capital lease obligations
$
7,954
$
1,923
Accounts payable
136,978
97,923
Deferred revenue
30,745
21,156
Accrued expenses
116,089
90,707
Current portion of closure, post-closure and remedial liabilities
14,518
18,412
Liabilities held for sale
—
3,199
Total current liabilities
306,284
233,320
Other liabilities:
Closure and post-closure liabilities, less current portion
32,830
28,505
Remedial liabilities, less current portion
128,944
134,379
Long-term obligations
264,007
292,433
Capital lease obligations, less current portion
6,839
6,915
Unrecognized tax benefits and other long-term liabilities
82,744
91,691
Total other liabilities
515,364
553,923
Total stockholders' equity, net
780,827
613,825
Total liabilities and stockholders' equity
$
1,602,475
$
1,401,068
Clean Harbors, Inc.James M. Rutledge, 781-792-5100EVP and
Chief Financial OfficerInvestorRelations@cleanharbors.comorClean
Harbors, Inc.Bill Geary, 781-792-5130Corporate Counsel for
Public AffairsorSharon Merrill AssociatesJim Buckley,
617-542-5300Executive Vice Presidentclh@investorrelations.com

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